Housing Society is only for members and not a commercial entity. Does it really come under GST?

[Last updated on July 14th 2017]

As per the GST Act, under section 6.21(1)  (page 24 in the PDF file), every supplier “person” is liable to register under GST if his aggregate turnover in a financial year exceeds twenty lakh rupees.

Under section 2.84(l)  (page 9 in the PDF file) definition of a “person” includes “society as defined under the Societies Registration Act, 1860;

Also, under section 2.14(e) (page 3 of the PDF file) definition of a “business” includes

“provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members;”

Its thus interpreted as of now that a Society should register under GST if their collections cross  20 Lakh Rupees in a financial year.

Update on 13th July 2017:

Govt. has issued a press note on GST applicability on RWAs. You can read the press release here – http://pib.nic.in/newsite/PrintRelease.aspx?relid=167386

GST needs to be levied only if monthly maintenance per member crosses Rs. 5,000/- and annual collection is more than 20 Lakhs. This blog post is updated accordingly.

Disclaimer: This information is offered as a public service. While we try to make it accurate as possible as on the date of publication, the laws change and more importantly the way we interpret them can change. We cannot promise that this information is always up-to-date and correct. We strongly recommend you to consult appropriate professional advisers to understand the actual impact for your society. You are solely responsible for taking decisions based on the information above.

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